MIU METHODOLOGY FOR COLOMBIA

1. The MIP is usually constructed from the COU. The purpose of the changes done to the COU is
to separate endogenous and exogenous factors, so an analysis of the impact on-by sector can be
done. The procedure for such a transformation may be done in at least two possible ways:

Product-product MIP. Here we disaggregate the columns of the COU into products in such
a way that the columns constitute units of homogeneous production and not activity
branches. In this case the final demand remains the same but the added value must be
recomputed in accordance with the unit of homogeneous production.
Activity-activity MIP. Here we aggregate the rows of the COU into activities. In order to do
it, the specific branches of economic activity that produce a determined product must be
determined. In this case the added value remains the same but the final demand needs to
be recomputed by translation to the corresponding branches of economic activity.

2. For the Colombian case, a product-product MIP was produced from the corresponding COU.
The steps were the following:
I.
II.

Construction of the COU at basic prices

Construction of the MIU by disaggregation of activities into products (productions?) and
translation of secondary production. This translation was done under the hypothesis of
product technology
Disaggregation into national and imported components

III.

3. Here we recall that secondary production is classified as:

Subsidiary production: originated as an economical extension of the main activity and not
technologically related to it.
Join production: obtained from common sources to the main production.
Sub-production: originated along the main production process in a fortuitous way.

4. The Leontief Multipliers were computed in the following way:

I.
II.
III.

Construction of the technical coefficients matrix A

Computation of (1-A)
Computation of (1-A)-1

Walter Andrs Pez Gaviria